Danske Spil

Winning a significant market share

Client

Winning a significant market share: An effective procurement strategy and process followed up by a Lean implementation carved out a substantial piece of the Danish online gaming market for Danske Spil – within the first year.

In June 2011, the Danish Parliament passed a new set of gaming laws that made it possible for licence holders to offer sports betting and poker-casino games in the highly regulated Danish market.

Danske Spil was previously excluded from offering customers poker-casino games for commercial and legislative reasons, while their competitors have had this offering for many years. It was, therefore, essential for Danske Spil to be ready from the first minute of the opening of the regulated market in order to gain as high a market share as possible. On 1 January 2012, the new products hit the Danish gaming market at exactly 00.01 am and were immediately a tremendous success.

Implement was asked to help with the implementation of Danske Spil’s poker-casino procurement and implementation strategy. This included designing the procurement strategy, requirement specifications, vendor selection and contract negotiations. Implement was also responsible for the implementation of the solution as project manager, representing Danske Spil with tasks such as planning the project, project governance, cost management, risk management and stakeholder management, managing an international team of 40 internal project members and five external suppliers from the UK, Bulgaria, Iceland, the US and India.

The end-to-end procurement and implementation responsibility of Implement has proven a magnificent driver for procurement and contract quality, leading the way for the substantial benefits achieved by Danske Spil.

The share-revenue pricing model

Danske Spil had to make it attractive for the vendor of poker-casino games to offer the new online products to customers as it was in direct competition with existing offerings of the vendor. The chosen incentive was the design of a share-revenue pricing model, giving the poker-casino vendor a percentage of the revenue share generated by Danske Spil’s products. This model has proven very successful. Within the first year, Danske Spil achieved a 60% market share and daily revenue that ranged significantly above target.

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